COMMISSIONER OF INCOME-TAX Vs. SUSHMA SAXENA

JUDGEMENT

(1.) THE following identical question of law is required to be referred to this High Court under Section 256 (2) of the Income-tax Act, 1961 (for short, "the Act"), by the Commissioner of Income-tax, Patiala :

(2.) A survey under Section 133a of the Act was conducted by the Department at the business premises of the assessee on February 17, 1986, and it appeared that certain income of the assessee had escaped assessment. The Assessing Officer, therefore, issued notices under Section 148 of the Act for both the assessment years 1983-84 and 1984-85. Returns were filed by the assessee. Thereafter, the assessments were made for the assessment years 1983-84 and 1984-85. Interest was also levied for both the years under Sections 139 (8) and 217 of the Act. Since the question sought to be referred relates to the levy of interest, other facts leading to the issuance of notices under Section 148 are not relevant and have, therefore, not been discussed in detail here.

(3.) UNDER Sub-section (8) of Section 139 of the Act, interest is chargeable on the tax payable on total income, as determined on regular assessment. Similarly, Section 217 of the Act also permits the charging of interest up to the date of the regular assessment.